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Research Paper | Computer Science and Information Technology | Volume 15 Issue 8, August 2026 | Pages: 1568 - 1573 | India
AI Chatbot Companies Promise Privacy Control, But Lawsuits and Regulators Tell a Different Story
Abstract: This study examines the gap between the privacy commitments communicated by major AI chatbot companies and allegations presented in recent lawsuits and regulatory actions. It also investigates users' awareness of these issues and whether such awareness influences their use of AI chatbots. A mixed-methods design combines qualitative document analysis of five major platforms, ChatGPT, Gemini, Perplexity AI, Meta AI, and Character.AI, with a survey of 209 respondents. AI chatbot use was reported by 95.7 percent of respondents, with most participants using these tools frequently. However, 52.2 percent had never read the privacy policy of their most-used AI tool, while 52.6 percent were unaware of or unsure about relevant lawsuits. Baseline trust in AI companies' protection of user data averaged 2.56 out of 5. After respondents were informed about a specific lawsuit concerning chatbot data practices, 33 percent reported that their usage would not change and 27.3 percent remained unsure. The findings indicate a privacy paradox in which concerns and limited trust coexist with continued chatbot use. The study highlights the importance of clearer privacy practices, improved consumer awareness, and appropriate regulatory oversight.
Keywords: AI Chatbots, Data Privacy, Consumer Awareness, Consumer Trust, AI Regulation
How to Cite?: Agamjot Singh Babra, "AI Chatbot Companies Promise Privacy Control, But Lawsuits and Regulators Tell a Different Story", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 1568-1573, https://www.ijsr.net/getabstract.php?paperid=SR26821110626, DOI: https://dx.doi.org/10.21275/SR26821110626